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Friday, 24 September 08:25 (GMT -05:00)



Stock and commodities markets

Silver Sets New Highs Amid Unstable Markets


Since international financial markets have become more unstable amid global economic and political uncertainty, more and more investors are fleeing risky assets for safe-haven assets like precious metals. As the result of this tendency, silver prices started a strong rally and quickly set a new 24-month high.
 

 

 

 

At the same time, some sources report that international investment funds are heavily investing in precious metals. Moreover, their exposure to gold and silver is reaching the all-time high. However, silver prices always move faster than gold prices. Some experts believe that this market tendency is going to be continued over at least over the next couple of months.
 
The spot price of silver is reported to have reached $21 per ounce. This is the highest price level since 2014. The world’s major investment funds are currently holding papers to the amount of 650 million ounces of silver. This is the all-time high.
 
Over the last 10 years, the investment funds have been heavily buying silver. The were doing so even when the spot price of silver reached $48,5 per ounce in 2011. Still, in late 2015, silver prices dropped to the 5-year low.
 

 

In Singapore, silver prices skyrocketed by almost 7% at a time the other day. Over the same period, gold gained only 1.2%. In Shanghai, silver gained 5,7% over the same reporting period. 
 


Over the first 6 months of the year, the price of silver increased by as much as 47% while gold gained only 27% over the same period. It is important to note that last spring, the gold-to-silver ratio was 1 to 84. At this point, this is 1 to 64. At the same time, companies related to silver mining saw their stocks appreciating.
 
Apart from being a precious metal, silver is an industrial metal as well. That said, this asset is backed by 2 precious features. Almost 50% of the silver produced today is used for industrial purposes. The rest of the metal goes to jewelers and mints to create jewelry, coins, and bullions.
 
Brexit Referendum Triggers Silver Rally
 
A lot of representatives of the international expert community believe that it was the Brexit referendum that triggered the strong silver rally we recently saw.  The thing is that after the U.K. announced the results of the Brexit referendum, international investors started withdrawing their capital from British assets, which turned into toxic assets overnight. The spare money was invested in precious metals, mainly in silver. This triggered a strong rally.
 
The Fed’s uncertainty over the fate of the key interest rate also backed the rally, Masterforex-V Academy experts say. There is a secondary driver. The thing is that 54% of industrial silver is used to build medical equipment and semiconductors.
 
 

 

According to the latest forecast, these 2 industries are expected to see a 3% demand increase while silver mining is expected to shrink by 2% at the same time. On top of that, over the last few years, silver was considerably underpriced. And now may well be the time to restore the price balance, especially when backed by increasing demand from China.

 

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Goldman Sachs is back in the game

20 years ago, Goldman Sachs used to be a Wall Street legend and a dream company to work for graduates with a financial degree. Over the last few years, the bank has been a loser with thousands of disappointed employees, managers, and investors. However, the other day Goldman Sachs made an attempt to get back in the game.

Publication date: 16 October 01:17 PM

European ETFs - Decent Alternative to American ETFs

The mentioned PRIIP rules are forcing the financial service providers and brokers to publish a specific set of info documents including the so-called KID with the key info on certain investment and insurance products. Since the funds coming from outside of Europe do not conform to these requirements, they cannot be offered to EU residents as investment products.
Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

Publication date: 12 August 01:39 AM

WTI Price Drops After US Oil Inventories Report

Today, another crude oil inventories report has been released by the USA:

Publication date: 03 June 12:21 PM

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM